NewJersey Resources Corporation (NJR)

Debt-to-capital ratio

		Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019
Long-term debt	US$ in thousands	2,587,840	2,362,840	2,102,840	2,102,840	1,442,840
Total stockholders’ equity	US$ in thousands	1,990,740	1,817,210	1,630,860	1,643,900	1,381,830
Debt-to-capital ratio		0.57	0.57	0.56	0.56	0.51

September 30, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $2,587,840K ÷ ($2,587,840K + $1,990,740K)
= 0.57

The debt-to-capital ratio of New Jersey Resources Corporation has shown a fluctuating trend over the past five years. As of September 30, 2023, the ratio stands at 0.61, indicating that debt accounts for approximately 61% of the company's total capital. This represents a slight decrease from the previous year's ratio of 0.62. While the ratio has remained relatively stable over the years, it appears to have increased from 0.51 in 2019 to the current level, suggesting a higher reliance on debt financing in recent years. This could potentially indicate an increased financial risk for the company, as higher levels of debt may lead to higher interest expenses and increased vulnerability to economic downturns. However, a deeper analysis of the company's specific debt structure and the industry's typical debt-to-capital ratios would be necessary to fully assess the impact of this trend on New Jersey Resources Corporation's financial position.